Bitcoin Foundation ordered to cease operations in California

The Bitcoin Foundation, a nonprofit organization devoted to promoting best practices for the virtual currency, has been ordered to cease operations in California. The California Department of Financial Institutions, which oversees banks, credit unions, and other financial organizations operating in the state, sent a cease-and-desist letter (see below) last month to the foundation accusing it of "engaging in the business of money transmission without a license or proper authorization." If found to be in violation of the California Financial Code, the Seattle-based foundation could be fined up to $2,500 a day per violation, in addition to criminal prosecution, according to Forbes , which first reported the story. The report noted that federal law prohibits engaging in money transmission without the appropriate state license or registration with the Treasury Department. Relat...